Managed Futures as a Crisis Risk Offset Strategy

Investment Insight

Managed Futures as a Crisis Risk Offset Strategy

While equity markets and other asset prices have generally retraced their declines in the years following the Global Financial Crisis, the fear of another sharp downturn à la 2008 has yet to subside. Crisis alpha or crisis risk offset are the latest terms used to describe a group of strategies that seek to perform well in the event of an equity market collapse. Allocation to such non-correlated strategies has the potential to dampen the impact of equity market volatility and enhance the expected risk-adjusted returns of an investor’s portfolio.

The views and opinions are those of the author as of the date of publication and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. The views expressed do not reflect the opinions of all investment personnel at Morgan Stanley Investment Management (MSIM) or the views of the firm as a whole, and may not be reflected in all the strategies and products that the Firm offers.

This general communication, which is not impartial, is for informational and educational purposes only, not a recommendation. Information does not address financial objectives, situation or specific needs of individual investors.

Alternative investments are speculative and include a high degree of risk., including the possible loss of principal. Past performance is not indicative of future results.

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It is important that users read the Terms of Use before proceeding as it explains certain legal and regulatory restrictions applicable to the dissemination of information pertaining to Morgan Stanley Investment Management's investment products.

The services described on this website may not be available in all jurisdictions or to all persons. For further details, please see our Terms of Use.